Chinese Yuan: Range trade holds with bullish tone against US Dollar – UOB
United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann see USD/CNH confined to a narrow intraday range, with flat momentum suggesting consolidation between 6.7450 and 6.7550.
UOB analysts Quek Ser Leang and Lee Sue Ann have observed that USD/CNH is confined to a narrow intraday trading range, between 6.7450 and 6.7550. Their short-term outlook suggests the Dollar could potentially dip to 6.7300, while the 6.7640 mark represents an upper resistance level. A sustained recovery over a longer term might require breaking through the 21-week EMA at 6.8430.
Yesterday's price movements highlighted the possibility of the USD testing 6.7420 despite the subdued trading action. However, a further decline below this level seems unlikely. On the upside, a resistance level of 6.7550 was identified. The USD subsequently traded within a flat range of 6.7457 and 6.7518, ultimately closing at 6.7483.
Today, flat momentum indicators point to a likely continuation of range-trading activities between 6.7450 and 6.7550. Over the next one to three weeks, UOB analysts remain optimistic about the Dollar potentially slipping towards 6.7300 as long as the strong resistance level of 6.7640 is not crossed.
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